California Judge Denies JetSmarter’s Motion To Compel Arbitration

By Doug Gollan, December 4, 2018

The $2 million lawsuit against JetSmarter featuring Kim Kardashian and Petra Nemcova will continue in Los Angeles


One element of JetSmarter contracts that has been hanging over the heads of plaintiffs and others contemplating legal action against by-the-seat private jet membership club JetSmarter has been a clause in its contracts designed to prevent members from taking the company to court. In the case of Derek Milosavljevic vs. Jet Smarter playing out in the Superior Court of the State of California, JetSmarter has apparently lost that battle.


According to a hearing held today, Dec. 4, 2018, Judge Mark V. Mooney denied the action filed by JetSmarter back on Sept. 7, 2018. The next court date is now set for Feb. 5, 2018. Lawyers for the plaintiff are now expected to begin the process if trying to depose JetSmarter executives. The case is one of more than a half-dozen lawsuits JetSmarter is facing.


The company has drawn the ire of current and former members by what they say is fraud in the way memberships were sold, promising services that weren’t delivered. The company’s investors include the Saudi Royal Family and Sean Carter, know as Jay-Z. Over the last several months it apparently is now operating few if any of its own shared flights, instead of relying on members to crowdsource flights often costing several thousand dollars per seat. Members who are suing allege they were promised free seats on scheduled private jet flights when they purchased their memberships.


The Los Angeles case made news in part because celebrity endorsers such as Kim Kardashian and Petra Nemcova were sited for the social media posts as well as those the company used featuring them which did not disclose they were allegedly compensated endorsers, potential violations of state and federal laws governing advertising.

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